The Fed in a Vice: an Ugly Jobs Report, Romney, & Obama

The ugly jobs report gave Mitt Romney’s campaign what it had been waiting for: a huge boost. And they’re out making hay. Romney called it "devastating news for American workers and American families.” An army of Republican talking heads swarmed over the land and pummeled President Obama with the jobs report. And just as Republicans see victory edge closer, shrill voices are now calling for the Fed to launch the next round of quantitative easing.

On Thursday, Romney, in California to rake in the big bucks with a series of high-dollar fundraisers, took some time out for a news conference in Fremont, in front of a weedy property dominated by a shuttered office building. Parched hills in the background. “Solyndra” a sign said. The company isn’t famous for its special thin-film solar cells that proved to be uncompetitive, but for the scandal surrounding the $535 million in federal loan guarantees it had received as part of the stimulus package. It was one of the ballyhooed "green tech" outfits that were going to revolutionize the American industrial scene, create gazillions of "green jobs," and conquer the world.

“A symbol of a serious conflict of interest," Romney called it as he recapped the sordid affair, one of the worst debacles, though not the only one, of the stimulus bonanza, which, if I recall correctly, had been a bipartisan concoction. When Solyndra went bankrupt, taxpayers had to pay off the loans that the government had guaranteed. The promised green jobs remained elusive.

And there certainly weren’t any signs of them in the jobs report (BLS PDF). Instead of the 165,000 jobs that the Wall Street hype machine had proffered, a mere 69,000 jobs were created in May—corroborating recent data of a wobbly economy. And worse: the April number was whacked down from the original and already disappointing 115,000 to 77,000 and the March number was trimmed from 154,000 to 143,000. The recent trend looks awful:

The headline unemployment rate ticked up a notch to 8.2%, and U-6, the broadest measure that includes the underemployed and those marginally attached to the labor force, ticked up three notches to 14.8%. While the Employment-Population Ratio improved a smidgen to 58.6%, it depicts better than anything else the tragedy of the American employment scene.

After World War II until 1975, the Employment-Population Ratio bounced between 55% and 58%. As women entered the workforce in greater numbers, it edged up; and after the recession of 1983, it went on a bull run that peaked in April 2000 at 64.7%. Then it declined. Whatever the reason. Outsourcing, innovation, off-shoring, tax laws, technological progress, corporate shortsightedness, cheaper labor elsewhere. When the housing and construction bubble took off in 2004, it recovered a bit, but in 2006, it all fell apart. Since the jobs crash of the Great Recession, the ratio has remained close to the lows last seen in 1984.

And this, despite years of gyrations by the Fed as it printed trillions of dollars and inflicted its zero-interest-rate policy on savers, bondholders, and pension funds, thus creating an era of financial repression where investing in relatively safe instruments produces a guaranteed loss after inflation. These policies have led to capital misallocation and outright capital destruction: for one of the fiascos that these policies abetted—capital destruction on a massive scale—and that is now brutally coming to a head, read.... The Natural Gas Massacre Gets Bloodier.

The policies have also created epic bubbles in bonds and commodities, plenty of inflation for the middle class, and an enormous amount of wealth for those who benefitted from them ... but alas, they haven’t created a lot of jobs.

As Romney is trying to use the deteriorating jobs picture as a crowbar to dislodge Obama from the Oval Office, an opposing effort is gaining momentum: getting the Fed to open up the spigot and flood Wall Street with money. On Thursday, Boston Fed President Eric Rosengren spelled out the Fed’s options, from extending Operation Twist to purchasing mortgaged backed securities. So the yield on the 10-year Treasury note plunged to 1.46%, unthinkably low not long ago. Japan comes to mind. But QE3, even in modest form, would be perceived as helping Obama cling to his job. And this would put the Fed on collision course with every Republican.

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Turn off reruns of the elephant & jackass show. Accept that there is one ruling party in 'murka, represented by elephant & jackass sock puppets, with the same central bankers' hands are in both.

The Bushbama regime has been a seamless continuum of destruction. Accept that the 'con party leadership is perfectly comfortable with the Kenyan Usurper. What's there not to like - massive deficits, exponentially increasing debt, generous bankster handouts, perpetual undeclared war, evolving totalitarian surveillance police state, etc.?

An Obamney regime will make sure NOTHING CHANGES. Any vote for the ruling elephantjackass party is a wasted, sucker's vote. Of course, as long as votes are "counted" in secret by computer, the ruling party has the same insurance policy as Stalin. Read the first few paragraphs of the Declaration of Independence for our framers' advice on what to do.

Agree. And I would like to add: The "1%" fielded (funded) a group of absurd clowns--and a knowingly unacceptable Wall Street Whore, Romney--so that they could insure Obama's place and their continued protection against prosecution.

And Obama and Holder haven't gone after anyone legally because...? It ain't just money. There a mightly pile of dirt hiding under that pile of shit Obama has heaped on the People, while calling it hope and change. Just how fucking dirty are Obama and Holder--and the gang of 535...

Obama was put in place by the banksters to take the hit if and when necessary.

It appears that a big throttle back needs to go down now to for the oligarchs to maintain the status quo - so Obama has to take a bullet (metaphorically speaking). It just goes with the job.

Personally, I don't care who is president but I won't be happy until Michelle is working the coffee counter at her local grocery store when she's 75. Payback for when she was disbarred in Illinois in the early 90's and the whole thing was repressed so the Barback could put the "smiley face" on the banksters crimes.

You are exactly correct. The same powers that elected Obama will throw him under the bus: The universities will be upset, but the bankers and military-industrial complex are going to make him the fall-guy for the failure of currency debasment (after they debase the currency some more).

They just HAD their chance...again...and they blew it by not picking RP in the primary. They had a chance with Perot, Buchanan, and even Nader...or, ANY of the libertarian candidates. They keep doing what they're told...that is their problem.

So what if the Fed is "on a collision course with every Republican". Romney (and all Republicans) have PROMISED not to reappoint Bernanke under any circumstances whatsoever. Bernanke has nothing to lose by going pedal to the metal, balls to the wall, to reelect Obama. He might as well appear in a joint news conference with Obama and proclaim the Reelection Refinance Plan, which will allow all mortgage debtors to refinance at 0% in the first 6 months of Obama's second term, regardless of LTV or any other consideration. While they are at it they should forgive all student debt as well - on Jan 21 2013. The Fed needs to drop all pretense of being non-political, and do what it takes to keep Bernanke in power by reelecting Obama.

Even if Romney wins and Bernanke doesn't get the nod, there are dozens, nay, hundreds of men we've never heard of that the elites could recommend for the ChairSatan position. We're toast one way or the other.

Since Americans have forgotten the cost of their liberty, they will have to pay for it again.

The Bob Hope generation had started their deleveraging towards retirement.

In 2007 the Baby Boom generation began deleveraging for retirement.

No politician will admit they understand this because they are helpless to improve things. They will wait out the slow years to come. But, will they reduce government spending ?

I am afraid not. But, whoever is president in 2013 will have to solemly announce that WE'VE GOT SOME BIG PROBLEMS THAT MUST BE DEALT WITH NOW.

Anyone with half a brain can see the value to converting 401-k and IRA money into a Roth-IRA. Those of you without jobs can convert significant amounts that will not cost more in taxes because of your deductible levels.

Hmmm, what if you don't qualify for a Roth IRA? I converted 37,000 IRA into a gold IRA (picked the coins out and watch the armored truck drive away and prayed). who knows if I'll ever see it again but it certainly was no more secure where it was. I have come to the conclusion in these times that it's better not to hold all your retirement investments in easily tracked instruments. The bulk of our retirement currently is held in a 401k and a 403b of which we haven't contributed to in 3 years. I have not got the courage yet to cash out as some here have. Hopefully when the times come it won't be too late. Our main focus now is survival prepping and hope when the SHTF it won't be beyond what is humanely possible to prepare.

The bully pulpit idea is questionable as RP does not speak in a way that the American Idol crowd can understand, but a easy way for him to change a lot as president would be to veto every bloated spending bill and pardon every noviolent drug offender, as he has promised. Too bad he has no chance. I'm voting for him anyway.

Agree with you and am planning to write in RP. However I do have some reservations. I really think he will be killed if he actually does start to effectuate changes if he were elected. Frankly an assassinated RP for me is worse than him not being elected. Even if his death meant the sheeple finally wake up to the horrors our country has become. That would be the final blow and with out even a modicum of hope for the future would be truly depressing.

I noticed that and find it hard to believe that the bankster crooks would make it known publicly that they are backing Mittens while the current president has the power to send them all to jail. Makes me wonder how much they are paying oblahblah to keep his mouth shut and not look their way.. Oblahblah deserves 10 times as much money what with the power he holds.. but maybe he's just a scared pussy..certainly doesn't seem like leadership material that's for shit sure.

Mr. Richter did note in his article that he recalled it as a bipartisan project:

"one of the worst debacles, though not the only one, of the stimulus bonanza, which, if I recall correctly, had been a bipartisan concoction."

Both parties have boondoggles and spend taxpayer money like drunken sailors, but from my standpoint, Obama has been the worst of the worst. But it really doesn't matter to me with respect to who I support. Obama is so horrible on so many fronts that it's a little ridiculous to argue about one little idiot escapade of stupidity. He would never come close to getting my vote even if Solyndra had been a big success story.

Ron Paul is the only candidate who really deserves our support. It's too bad enough of the electorate can't see beyond the mainstream media spin about "how crazy he is".

I think a lot more people will wake up, but it looks like they may need a catastrophe of unprecedented proportions to do so.

I wonder if it'll happen before the election. Even if it does, will it be too late?

Of course, even electing Ron Paul might not eliminate horrible problems, but he could at least mitigate them and shorten their duration, getting us on the path to cutting out the cancer and setting the stage for a healthy recovery down the road.

I remember Chu shoveling hundred of millions out the back door as the last day deadline approached, lest it go unspent.

My personal favorite is the aptly named Fisker Karma.

Another muti-million dollar government knows best greenie boondoggle. With the Karma (if you can even afford to shell out the $103,000 per copy) it's very possible you'll be in a cab following the tow truck back to the dealer...

which would be a stroke of luck in the long run. Otherwise it might start and you'll tool around town looking suave & sophisticated to friends & family, go back home, park it in your garage, go inside to make a sushi sandwich and have instant Karma...lol...start your house on fire...

Though not 100% of what's going on is Obama's fault, do you really think he requires levering out of office, considering how disrespectful, self-aggrandizing, tin-eared, and by the way disrespectful he is?

An email I just received:

Obama on Memorial Day 2012

The following was from a veteran who was at the Vietnam Memorial yesterday:

I am currently in Washington DC and witnessed the following. I saw this first hand and I bet you won’t hear about this from the Liberal media…

Vietnam veterans and the families of Vietnam veterans killed in action whose names are etched on the Wall were denied access to their memorial today, of all days, Memorial Day. The Vietnam Memorial was shutdown, cleared and secured for approximately 5 hours prior to Obama, his cronies and hand picked veterans for a 15-minute appearance by Obama. It’s obvious it was all for show. After all, this is an election year.

Hundreds if not thousands of Vietnam veterans and families of Vietnam veterans killed in Vietnam stood in disbelief as Secret Service, Park Police, Washington DC Police, etc., blocked all access to the Vietnam Memorial and kept everyone approximately 100 yards away from their memorial for the first time in the history of the Memorial so Obama could get some photos of him at the Wall. Veterans in uniforms stood in the heat angered as Obama makes them wait. It was a photo op at their expense and families of those killed in Vietnam.

As I stated, I was there and witnessed all of this. Many veterans and others flipped Obama the finger as his motorcade drove past. I didn’t honor him with a finger salute because I was busy holding up my 3?x5? Don’t Tread on Me Flag as his motorcade drove past.

“Today is Memorial Day and I went to the Vietnam Memorial and something happened there that upset me greatly and I want to pass it on.

For over 15 years I had been going with my dear Marine buddy, Larry Cullen. Since he passed away last year and was interned at Arlington Cemetery, I went this year accompanied by my grandson, Cameron. I had my list of Recon Marines, school classmates, and Larry’s fallen buddies to visit but, as we got close to the area of the National Mall where the Wall is located, we saw huge white tents. We also saw barricades all along Constitution Ave and for a couple blocks in each direction from the Wall. They even closed down all of Constitution Av from the Lincoln Memorial all the way to the WW-II Memorial and there was a virtual army of uniformed and plain-clothes security everywhere.

The biggest tent was right at the west end of the Wall entrance and there was a covered walkway leading right up to The Wall. It was so close, you couldn’t get to the Wall on that side so, my grandson and I went all the way around to the eastern entrance to the Wall and walked down along the Wall to the first of my names and I began telling my grandson about my buddies and how each one died. In short order, a guy in a dark suit and earpiece in his ear told us we had to leave as it was 0730 and they were closing Memorial until at least 1400 so the President could drop by. I asked if he was serious and he assured me he was. We and all the other veterans and families were forced to leave and it was locked down.

The Vietnam Memorial is the most visited site on the entire National Mall. Memorial Day has more visitors to the Vietnam Memorial than almost any other day. Even at the rather early hour Cameron and I were there, there were a lot of veterans and family members down there. In the midst of all that, Obama decides to close it for over seven hours just so he can roll by for 30 minutes in the afternoon for a campaign appearance with Democrats, supporters, and campaign donors? This is an incredulously arrogant, egotistical, and inconsiderate thing to do. What in hell was Obama thinking?

Hey President Obama: Since you ran me (and all the other veterans and family members) out of the Memorial before we finished our business there, how about doing me a favor. If you can take a short break from all the grippin’, grinnin’, posin’ and pontificatin’, how about taking a minute or two to stop by and say hello to my fellow Recon Marines and other classmates on the Wall. I suspect you’ll be too busy with photo ops, campaigning, and stroking donors to be troubled with a couple minutes doing what the Memorial was built for but, just in case, here’s a list so you can have your man find them and point them out to you. Hope you have a Meaningful Memorial Day.”